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October Residential Sales

Under the umbrella of the KWAR, for the month of October sales were above the previous 5-year October average of 464 sales. So we are seeing good activity but sales fell 16.6%compared to September’s activity.
VALUES
The average price of all residential properties sold last month increased 11.4% to $454,398 compared to October 2016. Detached homes sold for an average price of $541,368, an increase of 13.1% compared to October 2016. The average sale price for an apartment style condominium was $249,993 for an increase of 11%, Townhomes and semis sold for an average of $349,316 up 13.7% and $354,668 – 8% respectively.

MORTGAGE CHANGES
Last month the Office of the Superintendent of Financial Institutions Canada (OSFI) revised it residential mortgage underwriting practices, which come into effect on January 1, 2018. The change will require the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.
Those effected by this change may be first time buyers and the marginally qualified.

For more information or for property valuation contact me, Denis Pellerin at (519) 577-8181 or by email dpellerin@coldwellbankerpbr.com

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Final Guidelines for Mortgages Released

Canada’s banking regulator has published the final changes to its guidelines for residential mortgage underwriting, including a financial stress test for buyers who don’t need mortgage insurance.

The Office of the Superintendent of Financial Institutions said Tuesday the changes will come into force by Jan. 1, 2018.

Even homebuyers who don’t require mortgage insurance because they have a down payment of 20 per cent or more will have to prove they can continue to make payments if interest rates rise.

Other changes include restrictions on co-lending, or bundled mortgages, aimed at ensuring financial institutions do not circumvent rules that limit how much they can lend.

The final guidelines are generally similar to what OSFI had proposed in July, when the regulator put out a draft for public consultation.
The proposed changes, however, have been criticized for including potentially increasing costs and limiting access to mortgages for some home buyers.

“These revisions to Guideline B-20 reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada,” said Superintendent Jeremy Rudin in a statement on Tuesday.

The Canadian Press

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Toronto area sees 35 per cent drop in home sales from year ago: real estate board

Home sales in the Greater Toronto Area were down 35 per cent in September compared with the same month last year, although prices generally continued to increase.

The Toronto Real Estate Board says sales of all major types of residential property were down but the biggest decline was a 40.4 per cent drop in sales of detached homes.

The average selling price for all types of property sold in September was up 2.6 per cent from a year ago, rising to $775,546.

The board says high-priced detached homes accounted for a smaller share of sales than in September 2016 and that the average price for that market segment was flat.

Meanwhile the average price for condos was up 23.2 per cent to $520,411 and average prices for semi-detached houses was up 7.4 per cent at $752,379.

TREB’s benchmark price index, which adjusts for different property types, was up 12.2 per cent from the same time last year.

The Canadian Press

 

How will this effect KW, stay posted in the next few days you’ll get a better picture.

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Celebrate Fall

Don’t miss the opportunities during this Fall real estate season!  Your calls and emails regarding the local real estate market are always welcome.

And, if anyone you know is ready to buy, sell or refinance, your referrals mean more than you know.

Denis Pellerin, (519) 577-8181, dPellerin@coldwellBankerPbr.com

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Is this economist Correct? Many have missed their predictions greatly.

Canada’s hottest housing markets are heading towards a severe downturn according to Capital Economics’ David Madini.

The economist warns that the rise in sales in Vancouver is a temporary jump while the slowdown in Toronto’s larger market is indicative of a price correction.

Madini says that the impact is likely to be felt outside the housing market with a drag on second-quarter GDP, perhaps taking it to just 1 per cent; but if not then the longer-term outlook “appears to be worsening.”

There could be a reduction in housing investment, lower consumer consumption and financial stability could even be impacted.

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Just a friendly reminder to set your clocks ahead one hour this Sunday.

Did you know: Benjamin Franklin is credited with the idea for Daylight Saving Time back in 1784, but the idea was not implemented until 1895 and was first used in 1908 in Thunder Bay, Canada.

In most of Canada Daylight Saving Time begins at 2:00 a.m. local time on the second Sunday in March. On the first Sunday in November areas on Daylight Saving Time return to Standard Time at 2:00 a.m. local time. When Daylight Saving Time begins turn your clocks ahead one hour.